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Classify the following items as either revenue or capital expenditure: (a) An extension to an office building costing £24,000. (b) The cost of replacement valves on all the labelling machines in a canning factory. (c) Repairs to the warehouse roof. (d) Annual service costs for a courier firm’s fleet of vans. (e) Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years. (f ) A new bicycle purchased by a newsagent for use by the newspaper delivery boy. (g) Repairs to a refrigeration system of a meat wholesaler. (h) Repainting of the interior of a bar/restaurant which has greatly improved the potential for finding a buyer for the bar/restaurant as a going concern. (i) Wages paid to employees who worked on the construction of their company’s new office building.
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